The family of the nurse are set to receive more than £300,000 from Southern Cross Austereo, the parent company of Sydney station 2Day FM, whose presenters were behind the prank call.

The company said it will will resume advertising on the station on Thursday after "careful consideration" and that all profits from the advertising until the end of the year will be donated to a memorial fund which will benefit Ms Saldanha's husband and teenage children.

A minimum contribution of £320,000 will be made, the company said.

Rhys Holleran, SCA's chief executive, said yesterday: "We are very sorry for what has happened. It is a terrible tragedy and our thoughts continue to be with the family.

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"We hope that by contributing to a memorial fund we can help to provide the Saldanha family with the support they need at this very difficult time.

"The company today reiterates that it is deeply saddened by this tragic and unforeseen event and offers its condolences to the family of Jacintha Saldanha."

SCA has cancelled the station's Christmas party, planned for later this week, as it would be "inappropriate" to go ahead with the event for Sydney staff, said a spokeswoman.

Instead, money which would have been spent on the party will go to charity, she added.

The nurse transferred the DJs, believing they were the Queen and Prince of Wales, to a colleague who described in detail the condition of the Duchess of Cambridge during her hospital treatment for severe pregnancy sickness.

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Ms Saldanha, 46, from Bristol, would have been devastated by her unwitting role in last Tuesday's scam, her brother has said. She was found dead three days later in a block of nurses' flats close to the King Edward VII's Hospital, central London, where she worked.

It is understood the family are making arrangements to return Ms Saldanha's body to her native India. A private memorial service is expected to be held later this week.

The hospital has established a memorial fund in Ms Saldanha's name to provide financial support for her family, and made the first donation to the fund.

The two Australian DJs behind the hoax call - Mel Greig and Michael Christian - have given an emotional account of their reaction to Ms Saldanha's death.

Interviewed on Australian TV networks, the 2Day FM presenters said their prank call to the hospital prompted "a tragic turn of events no one could have predicted or expected".